Tax clarity for a contractor confused about his 'limited' options.
www.contractoruk.com
I would disagree, Its not about you choosing what it is(or dressing up ). What I am trying to ascertain is what it should be.
Limited Liability Partnerships (LLPs) don’t pay dividends. Instead, members are taxed on their share of the profit of the LLP, in broadly the same way as individual sole traders – in other words they are taxed on what they earn, not on what they draw out.
Most importantly, LLCs do not have to pay taxes. Instead, their profits and losses are passed through to their members' individual tax returns in the same way as a partnership.
LLC is a similar setup - sole establishment and llc are pass through rather than a company in same sense of things (Inc.)
An llc doesnt seem to be able to have retained earnings, ie no distribution, it seems to be pass through on to income of the members?
So to put it simply - If I incorporate in HK - and make 10 Million EUro profit, the shareholders only receive money once the directors of that company decide to distribute to shareholders. Likewise in UK, Cyprus and other countries in EUrope. This does not seem to be the case of an LLC
unless someone can point out it is the case?